Wednesday

Why You Should Trade In Forex?



Forex is a very lucrative market and the market is $4 Trillion a day! (Yes that's true). You might consider why to invest in the forex market when there are many options available such as stock exchange,real estate and that's why we wrote this post.

There are many advantages of trading in the foreign exchange market. We have listed them in our post:


Largest Financial Market:

Forex is the largest financial market in the world the daily volume is about $4 Trillion. Thousands of traders trade daily in the forex market.

Ease Of Entry

Foreign exchange is have a very good advantage and that is : it is quite easy to come into the game and play it. Many trading platforms allow you to start with even $1.00 but the common are $50 or $100 but still not bad(is it???).

High Level Of Liquidity

Due to presence of top players and banks in the market the market have high levels of liquidity and thus even largest transactions are completed within seconds.

24 Hour Trading

Forex never sleeps and the market is open for 24 hours a day and 5 days a week. The market prices depends upon the timezone and you can find currency pairs at any time to trade. This opens huge opportunities for the 9 to 5 people.

Ease Of Trading 

There are so many platforms in the market and due to the competitiveness you get the best trading tools and features in the platforms and thus they make your trading easy and comfortable.

These were some advantages of investing in the forex market and we hope we were clear enough to make you understand the advantages. 
Everything have some disadvantages as well and we will write another post about the disadvantages of forex trading so that you can know the market better.




What is Forex Trading?



Forex is a short term used for "Foreign Exchange" . It is nothing but the exchange of currencies where you buy one currency and sell it at the right time when you will get the best price or value for your money. Forex is very lucrative market and since it has gone online it is very fast as well. You can now make transaction,buy and sell currencies at your convenience.

Here we can take an example on what forex is and how it works"
"Suppose you are watching news and you see that the Dollar(USD) is going to lose against the Euro and then you rush off to the Forex platform and buy Euros from the money you have and as you are lucky, the Euro become stronger and then you sell the euros to buy the dollars back and the profit as well. This can be repeated and you can buy any currency pair(We will describe about in a later post)."
The profit and loss depends upon the exchange rate of the currency pair you are dealing in it might be USD/EUR, EUR/AUD, USD/JPY or anything. The forex market is concentrated in few currency pairs and if you are a beginner we will suggest you to try them instead of reinventing the wheel.

We wish you a best of luck in your Foreign exchange trades and we suggest you to read our reviews on the various trading platforms before choosing one. We have discussed the various pros and cons of the platforms and thus you can have a look and choose the best option for yourselves.



 

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